26 May 2025

China's dominance in the global supply of rare earth elements (REEs) is a significant factor influencing various industries, from smartphones and electric vehicles to guided missiles and satellites.

Between 2020 and 2023, China supplied 70% of U.S. rare earth imports, establishing itself as the primary source. Following closely are Malaysia, Japan, and Estonia in the top four suppliers. Despite their name, rare earths are not scarce in the Earth's crust; the challenge lies in extracting them in concentrated amounts economically and sustainably. China plays a pivotal role in this scenario, producing approximately 90% of the world's refined rare earths. Its extensive capacity for separation and purification gives it a substantial influence over global supply chains. For instance, yttrium, crucial in radar systems, lasers, and television screens, saw 93% of its U.S. imports originating from China between 2020 and 2023. Other vital rare earths like Samarium, Gadolinium, Terbium, Dysprosium, Lutetium, and Scandium face similar supply concentration challenges. These elements are integral to military applications, electric motors, and cutting-edge electronics, with companies such as Lockheed Martin, Tesla, and Apple relying on them for their core products. Source: Elements

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